The Multi-Level Marketing Industry
Introduction Get rich quickly and easily (John Golding, Laurence Maher, Jill McKeough, Gail Pearson, 1998) is a common saying in the Multi-level Marketing industry. Current Multi-level Marketing is growing very strongly, with Manualife, Herbalife, Amway… are the famous brands of Multi-level Marketing in over the world. It satisfies the needs of human such as health, physical and especially creates the income for the people involved in Multi-level Marketing. Multi-level Marketing has a good side but also has a bad side about the working system – the illegal pyramid schemes have just appeared in recently. Because of this problem, my research will have the customers know more about the Multi-level Marketing and have a clear though before deciding …show more content…
COMMISIONS Based on the volume of products sold through the efforts of their own sales as well as the down line. Requires each level doubled before a new level is created
Effect of the pyramid on customers (Jon M. Taylor, 2011) People involved in Multi-level Marketing suffer serious consequences such as
1. Those who invest the most are those who lose most.
2. In some cases, monetary losses from Multi-level Marketing participation lead to heavy indebtedness and bankruptcy.
3. Addiction to MLM can result from excessive commitment to Multi-level Marketing – which can become a lifestyle “Multi-level Marketing junkies”
4. Some MLM participants lose more than money. Divorces and rifts among extended families are commonplace. Even suicides and murders related to Multi-level Marketing participation. Current solutions 1. Revocation of the business license within 12 months. 2. Ask people to participate and must pay a deposit to buy a number of original goods to be entitled to participate in the network will be punished by paying money from 50 million vnd to 70 million vnd(DECREE OF THE GOVERNMENT,
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Coercion, fraud to participate in the Multi-level Marketing will be prosecuted for criminal liability. Places where solutions have been applied
On 27/04/2014 in Guangxi, China has a court sanctioned 118 people committed fraud in the sale of Multi-level. Each new member to join MLM must pay from 3,800 yuan ($ 600) to 69,800 yuan ($ 11.252) for leadership. And they received prison sentences from 7 months to 10 years (My Loan,
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